Binance CEO Opens Up On Ceffu Controversy

Binance CEO, Changpeng ‘CZ’ Zhao has addressed controversies surrounding Ceffu, denying claims that alleged that the company’s U.S. arm has a connection with the entity known as Ceffu.

In his tweet, CZ emphatically stated, “For the record, Binance US does not use, and has NEVER used Ceffu or Binance Custody. You can’t just make this stuff up.”

The SEC Accusations Refuted by Binance CEO

The ongoing dispute between the U.S. Securities and Exchange Commission (SEC) and Binance-affiliated companies, particularly Binance.US, and their alleged connection to Ceffu, formerly known as Binance Custody, underscores the complexities of regulatory oversight in the cryptocurrency industry.

At the heart of the issue is the SEC’s request for more information from BAM regarding the handling of customer assets at Binance.US. The SEC has raised concerns that Ceffu, which it considers a “newly rebranded Binance Entity,” may have control over customer assets. 

The regulatory agency has also pointed out that BAM is prohibited from using a “foreign Binance affiliated third-party for wallet custody services” under a previous consent order.

One of the key issues in this dispute appears to be the perceived lack of cooperation between Binance and the SEC in providing requested information. The SEC has claimed that Binance has not fully complied with its requests, while the exchange has argued that some of the SEC’s requests are overly broad or burdensome.

Additionally, the SEC has highlighted what it views as inconsistencies in Binance’s statements regarding Ceffu’s involvement and its relationship with exchange. These inconsistencies further complicate the situation and raise questions about transparency and compliance.

Looking Ahead

During a recent hearing, held on Monday, a District of Columbia (D.C.) district judge encouraged the SEC and Binance to collaborate and find a constructive resolution to their ongoing dispute, effectively urging both parties to “turn down the temperature.”

In a notable development, both the SEC and Binance agreed to a scheduled hearing on October 12, signifying their willingness to engage in a formal legal process to address the issues at hand. Additionally, they agreed to submit a joint status report to the court by October 10, providing updates on the progress of their discussions and any potential resolutions.